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RED HAT INC

No Longer Reporting

The company has not filed an annual or quarterly report since its Q1 FY2020 10-Q, filed Jun 28, 2019. Its latest SEC filing is a 15-12B from Jul 19, 2019.

The sections below describe the company as of the FY2019 annual report.

What Did They Do?

Sells open-source software and related support and consulting services to enterprises and service providers.

How Did They Make Money?

Customers mainly pay for annual or multi-year subscriptions to Red Hat technologies, which include support, updates, and upgrades; Red Hat spreads subscription payments over the subscription term. On-demand offerings through certified cloud and service providers bring in revenue when delivered.

FY2019 revenue

Who Were Their Customers?

Enterprises across industries such as financial services, government, healthcare, retail, technology, telecommunications, and transportation buy Red Hat offerings directly and through business partners.

Did Revenues Turn Into Profits?

Yes. It kept 13 cents of every revenue dollar as net income in FY2019 and turned 28 cents into free cash flow.

Operating income, FY2019
15% of revenue
▲ +8% vs FY2018 ($475.7M, 16%)
Net income, FY2019
13% of revenue
▲ +66% vs FY2018 ($261.9M, 9%)
Free cash flow, FY2019
28% of revenue
▲ +14% vs FY2018 ($838.2M, 29%)

How Were They Changing?

Since the FY2019 annual report
Latest quarter: Q1 FY2020, the three months to May 31, 2019
Revenue
▲ +15%
vs $813.5M in Q1 FY2019
Net income
▲ +25%
vs $113.2M in Q1 FY2019
  • Jul 9, 2019 IBM completed its acquisition of Red Hat. Red Hat became a direct wholly owned subsidiary of IBM, and its shares were delisted from the New York Stock Exchange.

Grew. Revenue grew 88% in 4 years, from $1.8B in FY2015 to $3.4B in FY2019, about 17% a year.

Who Did They Compete With?

Competes with Microsoft, HPE, IBM, Oracle, Unisys, AWS, EQT Partners, VMware, MuleSoft, Pegasystems, Pivotal, TIBCO Software, Docker, Mirantis, and Google

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